Another strong year: Asia Pacific nonlisted funds perform well in 2016
Real estate continues to attract a lot of capital. The most recent ANREV/INREV/PREA Investment Intentions Survey 2017, published at the beginning of the year, suggests more than 50 percent of investors want to increase allocations to real estate in 2017, especially to the nonlisted real estate sector. The viability and variety of opportunities within the industry are clear from the total US$128.4 billion of new capital raised globally in 2016.
In 2016, Asia Pacific was the only region to see an increase in capital raised when compared with 2015 (see “Equity raised by regional strategy, 2012–2016”, page 28). The attractiveness of real estate investment in Asia Pacific can be explained by the strong performance of nonlisted funds in the region during the year. Nonlisted real estate funds in Asia Pacific returned 10.6 percent in 2016, although this indicates a slight slowdown in returns compared with 2015, when they posted 12.1 percent.